The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1887-10-30
THE STORY OF A TRUST.
why THE CRIMINAL LAW is INVOKED
AGAINST GOULD.
Proofs OF Nefarious Transaction, in
the Accomplishment OF Which a Court
Plays Part Counsel De Lancey's
Statement of the Case.


ranial facts concerning the alleged lar
ccny by Mcssrs. Gould and Sage of 10000
shares OF stock Of the Denver Pacific rail |
wayand telegraph company recently made
public through the civil suit OF Stoop d
Rcns. the Amsterdam bankers, To recover |
S6O0O,OO0 being the par value OF the Stock
and interest and profits But the state
mcnt laid before Mr.. MARITIME by Mr.. Will |
lam II. De lancoy, rs counsel Tor the COM /
plainans, is more specific and detailed in |
its history Of the transaction. This state
mcnt begins with This declarations:
"On behalf Of holders Of consolidated !
bonds Of the Kansas Pacific railway com
PAM, secured 10y the deed Of trust 10 Jay
Gould aud Russell Sage as trustees, here
with ny before YOU the facts OF record cs-
,ahlishing that Jay Gould and Russell Sage
are guilty 'oi the crime OF grand larceny,
which crime the law Furnishes by fine to
the amount taken, for the benefit Of the
trust, as well rs by imprisonment OF the
guilty parties.
Then follows a definition and synopsis Of
the nc, passed MAY >, 1877, entitled AN
Ac, 10 Define and Punish the Crime Of
Embculcmcnt by Executors, Admins
traitors, Guardians and Trustees and
copy oi the decd ui trust, dated May |,
1879 investing Mcssrs Could aud Sage
with the trs,crship ni Denver Pacific
stock referred Ia On behalf OF the Kansas
Pacific COMPANY This trust was accepted
bN the two gentlemen and the COnsOli-
dated bonds were sold Ia the public.
nov IT WAS poSE.
The method b, which the alleged Grim.
inal breach If must was accomplished Is
next explained at length, and accom-.
panicd ly copies of all the documents or
lcticr or iestimuny referred a..
II b. aycrrrd that ON january ~, 1850,
at Jas could house in New York, "a con
sliirary a. take, convert aud make away
with the Denver Pacific railway trust stock
was formed and reduced 10 writing: a copy
of that written document having been Just
made public in the testimony taken last
summer IN New York 10y the Pacific rail.
way commission. II provided in effect Tor
the consolidation IT the Union Pacific and
Kansas pariiic railway companies with the
fknNrf Paiuc. The Union and Kansas
tac.ac s:agkE sen ;hyB selling 81 aiiu,u
par anil hy iliy tyrus ul the scheme the
proceeds ~ flc Denver stock WIS tu hc
'us,rl' iur the benefit II certain parties
who a. the plan was wrought out, proved
70 H. Gouid and Sage, and that further
or 'ncorsary ldrois were 10 bc drawn mp
by counsel
Tnr "DJurY ENoWtrnGE.'
Mr.. nr lanc,.y s.iyS that besides the
naked rmsyylcmcnt Sul,siantiutrd by TINS
"A. fssl
donc,s II conscious crime. Russell Sa,,r |
prup,rcd ,hat the parties present should. /
Instead ol rignug their names. merely Ut. /
iix their initials, which hcdid. AhoNcall, |
the palor WAS kept s'crvt, ~ appears from |
the testimony hyiurc the commission. The
objects ~ THIS memorandum for division
oi tine trust iund VEN carried out. and IN
ten DAYS from ~ dalc the proceeds IT
S,un.WU ~ The trust stock Wrn' physi-
cally Appropriated hy could aud sage
To accomplish this insult fictitious
action at law in the supreme court WIS de-
Niscd, the program being IN PASS this trust
stock ~ the Kansas Pacific company In
order that it, proceeds might b. immc.
diaiely handed over ,o Gould aud Sapr.
N'M this time, the statement proceeds
90 SAY, "Jny Gould controlled the Kansas
Pacific railway company Ou January IL,
1870, that company Nrltc today Gould aud
Russell sag trustees, asking To have the
trust stock. The TRUSTEES pplicd that IL
might hc open To- somc doubt whether
they had the pnwct Ia Comply with this
request without am order ui court, AMI
they rivr THEN correspondents Ia their at
toncyS agreeing not tO throw obstacles In
the way Of nn orlcr.'
rirE "TmrNpiY" LAWSUIT
"On the same day summon was srryct
from Goud's company 1n Gould and sage
trustees. 1hrcc days nitcrwarl followed !
complaint which, while acknov lcdgingth,
trust, added mcrcly that the debtor com
pany would like Ia have back the trust
stock, M Il WIS IT little value, but that the
company can and will avail itself II an
opportunity 10 use the ane 10 It's adyan.
tagc.'
Gould and Sage answered on the same
day that they could neither admit nor de-.
ny thcsc statements, though they had only
sh days b.orr planned the whole scheme
u appropriate the trust stock. In three
day. mon, on January -, 1850, paper
was obtained tallcd a dccrc Of the su
PRIME count oi New York, purporting e
allow Gould and Sage Ia deliver the trust
stock To the debtor company.
ur sw,G ~ sArg HANDS.
"on the next day. January -, 1880. III,
Denver Pacific trust sturk wis taken fruu
The sale aud nearly all oi its proceeds II
Union Pacific hallway stock, worth ahou
thW1WO, were Immediately delivered 4,
Jay Could. The articles OF consolidation
wcc signwl on the same dny. aud thus Nv,
plan oi cmlykllcincnt formulated ten dav
bcior was carried into execution III,
result was that the trust security WIS taksi
Nom the trust, and thctrusicps, Jay Goul,
and Sagc gui H. proceeds. The premiums
diNidcnds and Interest together With IA,
Union Pacific milNay company's stock n,
eciyed by these trustees. NJ above W
iorh' aggr,rnic about sd,on,mO"
Evidence ~ Urtr
The indicia Of crime IN this proccc,lin,
arr overwhelming. The very basis OF ia,
whole tHnsgctiun the memorandum q
January II was concealed from the court
lie conccalmcnt was essential 10 the sue
eete 81 The plot, ~ u would have show
that the consolidation was imsndiur
making tlW trust stork worth about 81.
oO,OoO II would have caused INJURY h,
The court ~ 10 Who the parties" we've /,
whom the trust stock was io %.
The oath Of Jay Gould 10 the ansWo
hlHcly expressed ignorance Oi the "uppor
tunity,' The Intended Transaction oi Whcl
be WAS the main beneficiary Above all
y deliberately concealed the cardinal fac
that he, the trustee, purporting 90 dcicnr
The trust In this aticmptto git the trus
siock, was himself 10 he the principal N
eipicni Of H. proceeds.
In fact the whole conception and ever
part and parcel Of this mockcry Of cour
prOccedinps etnploVpd bv th.s. mon la